Lifetime Health Cover (LHC) loading calculator
Wondering what your LHC loading is? Our health insurance experts can give you an LHC estimate and compare a range of policies over the phone in just a few minutes.
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What is Lifetime Health Cover loading?
The Lifetime Health Cover loading is an Australian Government initiative that encourages Australians to take out a private hospital insurance policy earlier in life. This, in turn, takes pressure off the public health system.
By using a Lifetime Health Cover calculator, you can predict the loading percentage you’ll owe each month. When you talk to one of our health insurance experts over the phone, they can help you figure out what your LHC loading is expected to be and look for a policy that’s suitable for you.
Lifetime Health Cover loading exemptions
Along with people who have hospital cover, holders of a Department of Veterans’ Affairs Gold Card, members of the Australian Defence Force and anyone born before 1 July 1934 are exempt from Lifetime Health Cover. New migrants are also exempt, provided they take out hospital cover within 12 months of their Medicare registration date.
If you’re overseas at the time of the LHC deadline, you have one year to take out hospital cover when you finally return home. If you do not take out private hospital cover during your one-year grace period, you’ll have to pay LHC if you later decide to get covered.
How much is Lifetime Health Cover?
Lifetime Health Cover will add 2-70% to your premiums, depending on how old you are when you first take out hospital cover.
LHC only applies to those who don’t hold a private hospital insurance policy by 1 July following their 31st birthday (your LHC base day). For every year after the age of 30, you’ll pay 2% more on your hospital insurance premiums if you eventually choose to take out private hospital cover. You may also be impacted by LHC loading if you held private hospital cover by 1 July following your 31st birthday, but let the policy lapse for more than 1,094 days (1 day less than 3 years).
For example, if you choose to take out private hospital insurance for the first time at age 40, you’ll pay 20% more on your hospital insurance premiums. Keep in mind that after you pay the LHC loading for 10 continuous years, it’ll be removed.
What should I do to avoid paying LHC on my hospital cover premiums?
Purchasing an eligible hospital cover policy is the best way to avoid paying LHC or minimise the amount you’ll have to pay. If you’re coming up on your 31st birthday, there’s no better time to consider taking out health insurance before you start accruing the LHC loading. If you’re already paying the LHC, one of the best ways to offset costs is to find a more cost-effective policy. Because the LHC is charged as a percentage of your hospital insurance premiums, finding a policy that offers the same or similar coverage for less means you could save on both your premiums and LHC loading.
With our free health insurance comparison tool, you can see and compare policies from some of Australia’s most trusted insurers side by side and compare their costs and features to help you find a policy that suits your healthcare needs.
Can I avoid the LHC loading by taking out extras cover?
No, extras cover doesn’t affect your eligibility for the LHC loading. If you want to avoid the loading, you’ll need either a standalone hospital cover policy or a combined hospital and extras policy.
While extras cover won’t help you avoid the loading, it can help you pay for treatments such as:
- dental
- physiotherapy
- chiropractic
- optical
- remedial massage.
Depending on your level of cover, you’ll be able to access many services (most of which aren’t subsidised by Medicare) to help you maintain your health and stay out of the hospital.
How does LHC work with a couple or family policy?
If you have a couple or family policy, your LHC loading will be averaged between you and your partner. For example, if you’re 40 with an LHC loading of 20% and your partner is 50 with an LHC loading of 40%, your total LHC on your family policy will be 30%.
If you take out single hospital cover before your LHC base day, your 0% loading can carry over if your switch to a couples or family policy.
What else affects my health insurance premiums?
Along with the LHC loading, some other factors will affect your health insurance premiums; namely, the Australian Government’s private health insurance rebate. This rebate is similar to the LHC loading in that it’s designed to encourage Australians to take out a private health insurance policy.
However, unlike the LHC, the rebate applies to hospital, extras and ambulance cover policies. You can claim this rebate as a reduction of your premiums or a tax offset when you lodge your tax return. The rebate is a percentage of your base insurance premium and doesn’t apply to the LHC loading.
The rebate amounts are:
| Income tiers | Base tier | Tier one | Tier two | Tier three |
|---|---|---|---|---|
| Single income | Under $105,000 | $105,001 – $123,000 | $123,001 – $164,000 | Over $164,001 |
| Family income | Under $210,000 | $210,001 – $246,000 | $246,001 – $328,000 | Over $328,001 |
| Rebate amount | ||||
| Under 65 | 24.118% | 16.079% | 8.038% | 0% |
| 65-69 | 28.139% | 20.098% | 12.058% | 0% |
| Over 70 | 32.158% | 24.118% | 16.079% | 0% |
|
Source: privatehealth.gov.au. Current from 1 July 2026 Single parents and couples are included in the family tiers. The income thresholds for families with dependent children are increased by $1,500 for each child after the first. |
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Meet our health insurance expert, Steven Spicer
As the Executive General Manager of Health, Life and Energy, Steven Spicer is a strong believer in the benefits of private cover and knows just how valuable the peace of mind that comes with cover can be. He is passionate about demystifying the health insurance industry and advocates for the benefits of comparison when it comes to saving money on your premiums.
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